The tale of the Ice
Dragon opens as Graculus comes across a very small and fierce
sword-wielding individual by the name of Ronf, who hales from the
Hotwater Valley. Ronf is on a mission to bring a message to Noggin from
his people, so Graculus carries him to Noggin's castle, where Noggin
formally receives his visitor.

Noggin learns from Ronf that the people of the Hotwater Valley are
being terrified by a huge dragon, and Ronf echoes his people's plea for
Noggin to rid them of the terrible dragon. Noggin agrees to help, and
accompanied as ever by the mighty Thor Nogson and Graculus, he returns
with Ronf for the Hotwater Valley on a sled hauled by 6 strong dogs.

Their long journey takes them high into the snow-laden mountains,
where they come to the forest of Troldeskow. Fearing they would get lost
in the deep forest, Graculus flies above them and guides them safely
through the forest and to the foot of the great Glass Mountains. On
seeing the mountains, the travellers strike camp for the night, but
Graculus is haunted by distant memories that the place stirs in him.
Although Graculus was hatched of an egg given to Nooka by a trader, he
is unaware of where his true homeland is. Noggin urges Graculus to fly
off and confirm his suspicions that he has returned to the land of his
ancestors, and Graculus duly takes to the air as the others settle for
the night.

The following day, as the party start their perilous ascent of the
mountains, Thor Nogson spies what he takes to be Graculus. However, the
arrival of further green birds followed by Graculus himself confirms
that Graculus has at last discovered his true home. Suspended by their
climbing ropes, the birds lift Noggin and his fellow travellers over the
Glass Mountains and deposit them safely in the Hotwater Valley. No
sooner have their feet touched down than they hear the footsteps of the
passing dragon. Noggin and Thor Nogson set off in pursuit and, climbing
high on a hill, are surprised to find that the dragon has vanished. It
is then that they notice that they are actually standing on the dragon's
back!

The dragon is keen to befriend the humans, but unfortunately, being
an Ice Dragon, his breath accidentally freezes Noggin and Thor Nogson
solid. However, the dragon takes them down to the hot geysers of the
Hotwater Valley where he thaws them out. The dragon introduces himself
as Grolliffe, and tearfully tells how he has recently been forced to
leave his normally cold cave, it having suddenly become hot and full of
smoke. Noggin agrees to investigate the problem, and the dragon flies
both him and Thor Nogson up to the mouth of his cave. The brave Thor
Nogson draws his sword and enters the steamy cave, where he discovers
Nogbad shovelling piles of jewels and precious stones, the rightful
property of the Dragons' Friendly Society, into sacks.

As Noggin goes forward to challenge his wicked Uncle, Nogbad blasts
him back out of the cave with a cannon. Grolliffe then breathes his icy
breath over the cannon, freezing it, and the adventurers, now joined by
Ronf, enter the cavern as Nogbad makes his escape through a second cave
and sets off for Lapland, stealing Noggin's sled and dogs. The now
furious Grolliffe flies after Nogbad though, and with one icy breath,
freezes him in his tracks.

The delighted Grolliffe thanks Noggin, presenting him with a gong and
promises the assistance of the Dragons' Friendly Society whenever Noggin
might so summon it. He then settles down to sleep for a thousand years,
and the Nogs roll a tone across the cave mouth. Also delighted to be rid
of the marauding Ice Dragon, the small people of the Hotwater Valley
offer a lullaby: